DB:MCNA

Stock Analysis Report

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Executive Summary

NTT DOCOMO, INC., a telecommunications company, provides various mobile services in Japan and internationally.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has NTT DOCOMO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCNA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.0%

MCNA

4.6%

DE Wireless Telecom

5.0%

DE Market


1 Year Return

15.5%

MCNA

0.2%

DE Wireless Telecom

4.1%

DE Market

Return vs Industry: MCNA exceeded the German Wireless Telecom industry which returned 0.2% over the past year.

Return vs Market: MCNA exceeded the German Market which returned 4.1% over the past year.


Shareholder returns

MCNAIndustryMarket
7 Day-4.0%4.6%5.0%
30 Day-12.5%15.0%13.8%
90 Day-3.3%-4.7%3.3%
1 Year17.5%15.5%4.8%0.2%5.8%4.1%
3 Year16.9%9.3%-18.4%-31.0%-0.9%-8.5%
5 Year62.7%44.3%-15.6%-36.3%10.5%-3.6%

Price Volatility Vs. Market

How volatile is NTT DOCOMO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NTT DOCOMO undervalued compared to its fair value and its price relative to the market?

32.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCNA (€23.8) is trading below our estimate of fair value (€35.17)

Significantly Below Fair Value: MCNA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MCNA is good value based on its PE Ratio (16.4x) compared to the Wireless Telecom industry average (17.2x).

PE vs Market: MCNA is good value based on its PE Ratio (16.4x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: MCNA is poor value based on its PEG Ratio (6.3x)


Price to Book Ratio

PB vs Industry: MCNA is good value based on its PB Ratio (1.8x) compared to the XE Wireless Telecom industry average (1.9x).


Next Steps

Future Growth

How is NTT DOCOMO forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCNA's forecast earnings growth (2.6% per year) is above the savings rate (0.2%).

Earnings vs Market: MCNA's earnings (2.6% per year) are forecast to grow slower than the German market (22.7% per year).

High Growth Earnings: MCNA's earnings are forecast to grow, but not significantly.

Revenue vs Market: MCNA's revenue (0.8% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: MCNA's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCNA's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has NTT DOCOMO performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCNA has high quality earnings.

Growing Profit Margin: MCNA's current net profit margins (12.7%) are lower than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: MCNA's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: MCNA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MCNA had negative earnings growth (-10.8%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-6.9%).


Return on Equity

High ROE: MCNA's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is NTT DOCOMO's financial position?


Financial Position Analysis

Short Term Liabilities: MCNA's short term assets (¥2,715.3B) exceed its short term liabilities (¥1,740.2B).

Long Term Liabilities: MCNA's short term assets (¥2,715.3B) exceed its long term liabilities (¥523.5B).


Debt to Equity History and Analysis

Debt Level: MCNA's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: MCNA's debt to equity ratio has reduced from 4.1% to 0.9% over the past 5 years.

Debt Coverage: MCNA's debt is well covered by operating cash flow (2635.6%).

Interest Coverage: MCNA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is NTT DOCOMO's current dividend yield, its reliability and sustainability?

4.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCNA's dividend (4.06%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: MCNA's dividend (4.06%) is in the top 25% of dividend payers in the German market (3.8%)


Stability and Growth of Payments

Stable Dividend: MCNA's dividends per share have been stable in the past 10 years.

Growing Dividend: MCNA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.7%), MCNA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Kazuhiro Yoshizawa (64yo)

4yrs

Tenure

Mr. Kazuhiro Yoshizawa has been the President and Chief Executive Officer of NTT DOCOMO, Inc. since June 16, 2016 and entered NTT Public Corporation in April, 1979. Mr. Yoshizawa served as Executive Genera ...


Leadership Team

NamePositionTenureCompensationOwnership
Kazuhiro Yoshizawa
President4yrsno data0.0010% ¥818.3k
Osamu Hirokado
Executive VP2yrsno data0.00025% ¥194.8k
Rakshit Kapoor
Head of Indian Operations3.92yrsno datano data
Keisuke Yoshizawa
Managing Director of Investor Relations Departmentno datano datano data
Hiroshi Tsujigami
Senior EVP12yrsno data0.00026% ¥202.6k
Shigeto Torizuka
Executive VP2yrsno data0.00019% ¥148.1k
Makoto Tani
Senior VP & Executive GM of Tokai Regional Officeno datano datano data
Hiroshi Nakamura
Executive VP3yrsno data0.00035% ¥272.8k
Seiji Maruyama
Senior EVP4yrsno data0.00031% ¥241.6k
Ken Yoshizaki
Senior VP & GM of Financial Business Departmentno datano datano data

4.0yrs

Average Tenure

58yo

Average Age

Experienced Management: MCNA's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kazuhiro Yoshizawa
President4yrsno data0.0010% ¥818.3k
Osamu Hirokado
Executive VP2yrsno data0.00025% ¥194.8k
Hiroshi Tsujigami
Senior EVP12yrsno data0.00026% ¥202.6k
Shigeto Torizuka
Executive VP2yrsno data0.00019% ¥148.1k
Hiroshi Nakamura
Executive VP3yrsno data0.00035% ¥272.8k
Seiji Maruyama
Senior EVP4yrsno data0.00031% ¥241.6k
Hozumi Tamura
Executive VP3yrsno data0.00030% ¥233.8k
Kenichi Mori
Executive VP2yrsno data0.00019% ¥148.1k
Michio Fujiwara
Senior VP & Executive GM of Tohoku Regional Office and Director1yrno data0.00016% ¥124.7k
Kouji Tsubouchi
Executive VP & Executive GM of Hokkaido Regional Office and Director1yrno data0.00039% ¥304.0k

2.5yrs

Average Tenure

57yo

Average Age

Experienced Board: MCNA's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NTT DOCOMO, INC.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NTT DOCOMO, INC.
  • Ticker: MCNA
  • Exchange: DB
  • Founded: 1991
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥9.537t
  • Listing Market Cap: JP¥77.936b
  • Shares outstanding: 3.23b
  • Website: https://www.nttdocomo.co.jp

Number of Employees


Location

  • NTT DOCOMO, INC.
  • Sanno Park Tower
  • 11-1, Nagata-cho 2-chome
  • Tokyo
  • 100-6150
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9437TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYOct 1998
NTDM.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 1998
MCNDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1998
DCMY.YOTCPK (Pink Sheets LLC)ADS EACH 1 REP 1 ORD SHS NPVUSUSDMar 2002
MCNADB (Deutsche Boerse AG)ADS EACH 1 REP 1 ORD SHS NPVDEEURMar 2002

Biography

NTT DOCOMO, INC., a telecommunications company, provides various mobile services in Japan and internationally. It operates through three segments: Telecommunications Business, Smart Life Business, and Other Businesses. The company offers iPhone, iPad, smartphone, tablet, and feature phone products and services under the docomo name, as well as d POINT CLUB, a point program. It also provides technical and operational services to mobile operators and other companies. In addition, the company offers LTE, FOMA, and FOMA high-speed services; docomo Wi-Fi services; VoLTE voice call services; docomo Hikari, an optical Internet service; and docomo Shop services. Further, it provides optical-fiber broadband, satellite mobile communications, and international services; distributes video, music, and electronic books, etc.; and offers finance/payment services, online shopping service, other life-related services, etc. Additionally, the company engages in the mobile device protection service, commissioned development/sale, system maintenance businesses, etc. As of March 31, 2019, it had 78.45 million cellular subscriptions; and 70.15 million d POINT CLUB memberships. NTT DOCOMO, INC. has collaboration with Tohoku University to research on an artificial-intelligence technology to detect periodontal disease by photographing a person's gums with a smartphone. It also has a mobile payment alliance agreement with Merpay, Inc., LINE Pay Corporation, and KDDI Corporation for merchant stores. The company was founded in 1991 and is headquartered in Tokyo, Japan. NTT DOCOMO, INC. is a subsidiary of Nippon Telegraph and Telephone Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 23:06
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.